Markets on march 10 , 2016
Short sell $JCOM:
That was a decent move to the downside for JCOM. I was travelling from work to home by train and checking my mobile for interesting tweets and saw that Citron had tweeted a new negative report. Tweet was only 9 minutes old so I fired up my broker account checked the charts and figured that the Risk Reward was pretty decent. With Citron’s latest call on VRX still fresh in mind $JCOM had only 1 way to go and that was down:). Sold 100 shares short. For the first time ever I scaled out 2 x 50. Liked that as well. Pretty solid gain of $449. Erased the loss from yesterday + a nice profit! And that while commuting 🙂
Lesson Learned. Not really a lesson to learn, maybe following the right people on twitter? Oh and scaling in and out that is something worth to practise I guess.
Markets on march 9 , 2016:
Trade 1 $TSLA:
Short entry at 206.80 and stopped out at 209.01. Thought double top so just short it. That was just a plain stupid entry. Stock took off moments after executing the sell short order. If I had a better look at the chart I would have noticed that the stock was trending in channel. I should not have been short biased. Better waited for the proper setup . A break of the low of the channel for a short or the breakout of the upper side of the channel and maybe a break of the former top for a long. In general this was not a weak chart. From yesterday it bounced of a triple bottom. Topped out on yesterdays top, retraced a bit and looked pretty strong. Instead made an early short and failed to execute the proper stop just above the HOD. Result of my stubborness and stupidity a loss of 250$….
Begin to look at the chart unbiased. Find the support/ resistance, channels etc. Then make a decision what to do. Looking for a quick scalp? Short the top of the channel not the bottom of buy the bottom. Place tight stops!